Creative Financing for Business Owners


Raising a substantial capital for your dream entrepreneurial venture need not be a herculean task, as there are myriad creative and ingenious ways to acquire decent start-up funds to offer an impetus to your business in the right direction. The following creative financing for business guide offers potential entrepreneurs, like yourself, smart ideas and resourceful tips to give your venture a super-winning financial head start.

Personal Savings and Investment Portfolio

If you are astute enough to plunge into an independent business venture, it can also be assumed that you have sufficient monetary back-up in terms of savings, investments and retirement funds. When dipping into to your personal savings, use shrewd financial planning, and plan your resources according to other major expenses, while taking into consideration the payback period when your venture will start breaking even and eventually make profits.

The ideal way to start a business is to put aside enough savings from previous jobs to launch an independent venture. It is critical to judge if your business is viable and pragmatic enough to risk your financial security. If you are confident of your brainchild, it makes sense to invest in it rather than in high-profile mutual funds or blue-chip stocks. Brokerage account holders can put their stocks on margin as opposed to selling them outright. Retirement funds should be your last resort, and if you are using them, perceive your enterprise as any other retirement investment option that has to reward you considerably.

Get Financed by Friends or Family

Not all of us are lucky enough to have a rich aunt with no heirs leave a wealthy legacy for us, however there are a few people we know in our circle of influence who are looking for conduits to invest their financial resources. Your business can be a good idea. This method of financing gives you the flexibility of determining repayment terms that are comfortable for you and the other party, and there is a certain amount of suppleness in the deal with all the clauses being worked out in a relatively informal manner. The flipside side is, relationships may sour if you do not keep your promise of offering the return on investment within a stipulated time frame.

Sell Unwanted Stuff

This may sound like a trivial idea of raising finances for your enterprise, however, you will be amazed at the amount your junk can help you acquire.  This creative financing method need not just exploit an unused inventory; you can sell anything from licensing rights you no longer need, unused trademarks and unoccupied premises to old stuff lying in your office, and even dormant web domains. This approach is more suitable for recycling your unused assets to finance your exsisiting enterprise, rather than starting a new venture.  

Spread the Word

You will be surprised at the results you may get through advertising your business. An inspiring and inventive plan often catches the attention of sharp investors who are forever on the lookout of perceptive business ideas to invest in. Generating sufficient interest for your business will ensure that you put together a reliable bank of investors who are ready to pool in the funds required for your venture.  

Creative capital acquiring techniques, a sound understanding of cycling funds and managing your cash flow, while devising smart mechanisms to finance and refinance your business, can go a long way in determining its success quotient.

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